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(9-5) COST OF EQUITY: DIVIDEND GROWTH Summerdahl Resorts' common stock is currently trading at $36 a share. The stock is expected to pay a

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(9-5) COST OF EQUITY: DIVIDEND GROWTH Summerdahl Resorts' common stock is currently trading at $36 a share. The stock is expected to pay a dividend of $3.00 a share at the end of the year, and the dividend is expected to grow at a constant rate of 5% a year. What is the cost of common equity? SHOW ANSWER

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